Consumer proposals are great options for people who don't want to declare bankruptcy. You can agree to a consumer proposal Toronto with your creditor and legally file. This protects you from various debt collectors and will allow you to just pay the portion of your debt that you are able to. Your creditor will be a licensed bankruptcy trustee, so you can be sure to address all your debt woes with him or her.
Consumer proposals include a number of both benefits and limitations, all of which your creditor will explain to you. However, the bottom line is that you will only pay a specific portion of the debt, a number that you can afford. The great thing about this is that the amount of burden you originally had is somewhat relieved.
Once you file, your wage garnishments will cease, there won't be any additional interest, and debt collection companies will stop asking for payment. Unlike bankruptcy, you aren't liable for house foreclosure or loss of other assets. Additionally, you are able to pay that portion of the debt within 5 years.
Surplus income is not an issue or concern when it comes to these proposals, just like bankruptcy. Additionally, the assets and home you will be able to keep will also never be surrendered temporarily to your creditor during the period of payment. Regardless of whether you income increases or decreases within the 5 years, the portion of debt agreed to will never change either.
Bankruptcy filings give you a R9 rating, the lowest one you can get. Proposals such as this, on the other hand, give you R7 ratings, much better than bankruptcy. Therefore, it is best that you choose the latter option, as your credit score won't be as negatively affected.
The problem with bankruptcy is that you won't be paying any portion of your total debts, and thus your creditors also receive nothing. It is much more beneficial to your creditors if you both agree to a specific amount of the debt you can afford. This way, they will receive at least some money back.
If your debts range between five thousand dollars to two hundred fifty thousand dollars, consumer proposals are a good solution for you. They would also be a good option for you if you have a stable job and are able to pay a small amount per month, or if you just can't seem to pay a total debt balance with the full interest. If you don't want to go bankrupt because you want to avoid the surplus income payments or can't obtain a debt consolidation loan because of a high debt balance, you can also file this proposal.
There still are some limitations to consumer proposals. You won't be able to pick which debts you want to pay, since your creditors will decide the dispersal. You also won't be able to avoid alimony or spousal support, some student loans, or home mortgage and car loan obligations. Your creditor will give you further detailed information on what qualifies and what doesn't in consumer proposals.
Consumer proposals include a number of both benefits and limitations, all of which your creditor will explain to you. However, the bottom line is that you will only pay a specific portion of the debt, a number that you can afford. The great thing about this is that the amount of burden you originally had is somewhat relieved.
Once you file, your wage garnishments will cease, there won't be any additional interest, and debt collection companies will stop asking for payment. Unlike bankruptcy, you aren't liable for house foreclosure or loss of other assets. Additionally, you are able to pay that portion of the debt within 5 years.
Surplus income is not an issue or concern when it comes to these proposals, just like bankruptcy. Additionally, the assets and home you will be able to keep will also never be surrendered temporarily to your creditor during the period of payment. Regardless of whether you income increases or decreases within the 5 years, the portion of debt agreed to will never change either.
Bankruptcy filings give you a R9 rating, the lowest one you can get. Proposals such as this, on the other hand, give you R7 ratings, much better than bankruptcy. Therefore, it is best that you choose the latter option, as your credit score won't be as negatively affected.
The problem with bankruptcy is that you won't be paying any portion of your total debts, and thus your creditors also receive nothing. It is much more beneficial to your creditors if you both agree to a specific amount of the debt you can afford. This way, they will receive at least some money back.
If your debts range between five thousand dollars to two hundred fifty thousand dollars, consumer proposals are a good solution for you. They would also be a good option for you if you have a stable job and are able to pay a small amount per month, or if you just can't seem to pay a total debt balance with the full interest. If you don't want to go bankrupt because you want to avoid the surplus income payments or can't obtain a debt consolidation loan because of a high debt balance, you can also file this proposal.
There still are some limitations to consumer proposals. You won't be able to pick which debts you want to pay, since your creditors will decide the dispersal. You also won't be able to avoid alimony or spousal support, some student loans, or home mortgage and car loan obligations. Your creditor will give you further detailed information on what qualifies and what doesn't in consumer proposals.